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What Are SRECs and How Do They Work?

Edited by Jamie Cesanek

Last updated 06/08/2023

Key Points

  • Solar renewable energy credits (SRECs) are incentives that allow customers to earn credits for selling energy produced from their solar panels to utilities.
  • Currently, only seven states and Washington D.C. have SREC markets.
  • If you live in a state with an SREC market, you can sell SRECs to utilities and earn money.
  • Supply and demand determine SREC prices.

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